What are the differences between Private companies and Public companies?

September 10, 2019


  1. The public company refers to a company that is listed on a recognized stock exchange and traded publicly. A Private Ltd. the company is one that is not listed on a stock exchange and is held privately by the members.
  2. here must be at least seven members to start a public company. As against this, the private company can be started with a minimum of two members.
  3. A public company can invite the general public for subscribing shares of the company. As opposed, a private company has no right to invite public for subscription
  4. The transferability of shares of a Pvt. Ltd. company is completely restricted. On the contrary, the shareholders of a public company can freely transfer their shares.
  5. A public company should have at least three directors whereas the Private Ltd. company can have a minimum of 2 directors.



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